MobiKwik aims for revenues of Rs 500 cr in fiscal year 20, IPO in 4 years
New Delhi, September 3 () The digital payment company MobiKwik said Tuesday that it has tested positive for cash flow and is confident of registering Rs 500 million in revenue this fiscal year due to the strong adoption of financial solutions on its platform.
The company, which competes with fintech players such as Paytm and PhonePe, is also analyzing an initial public offering (IPO) within about four years.
We have successfully overcome the first obstacle to reaching a positive cash flow in August this year. Our next goal is to achieve an annual income of Rs 700 crore (USD 100 million) in March 2020. We will double our fintech scale in 2020 to make fiscal year 2011 our first full year of profitable growth, said the co-founder of MobiKwik, Upasana Taku
MobiKwik's revenues before entering fintech were approximately Rs 100 million, and the company is seeking revenues of more than Rs 500 million in the 2019-2019 fiscal year, he added.
Once we reach this historic milestone (income execution rate of Rs 700 crore), we will move towards an IPO in 2023-24. We aim to become the first Indian fintech company and the first Indian payment company to quote in India, he said. .
The income execution rate is a term used in online retail sales to indicate the total sales value of merchandise sold in a market over a certain period of time.
The MobiKwik revenue execution rate in January this year was Rs 218 crore.
The company had been active as a mobile payment platform in India, but despite having 50 million users (around May 2017), it was not close to profit and none of the competitors.
The competition was intense and the market was flooded with too many cash refunds and discount offers at that time. Meanwhile, banks such as HDFC and Kotak with a smaller customer base were highly profitable and traded on the stock exchanges. We decided it was time to find a way to increase our revenue per user to make the business profitable, he said.
It was then that MobiKwik decided to take advantage of the data to profile users and merchants in more than 1,000 variables that served them best, Taku explained.
In January 2018, we launched our first fintech product: a digital credit line linked to the user's MobiKwik account, followed by 'sachet' insurance products. We also have heritage and digital gold management products ... All these fintech products together now contribute 25 percent to our revenue, he said.
The company, which now has about 110 million users in India, also aims to continue growing its payment platform to reach 250 million users and its financial products reaching at least 30 percent of that base. We will launch more innovative products in all financial services that meet the diverse needs of users and merchants. We will also expand geographically by replicating our success story in India in several countries in South Asia, he said. SR RUJ MR MR